Standard Chartered Bank (Pakistan) Limited reported a 29% decline in profit after tax to Rs11.78 billion for the half year ended June 30, 2026, compared with Rs16.56 billion in the same period last year.
Profit before tax fell to Rs24.38 billion, while earnings per share declined to Rs3.04 from Rs4.28. Second-quarter profit also dropped to Rs6.18 billion from Rs8.58 billion.
Despite weaker earnings, the bank declared an interim cash dividend of Rs3 per share, maintaining the same rupee payout as last year.
Lower Interest Rates Hit Bank Margins
The bank’s revenue declined to Rs34.81 billion from Rs44.40 billion, with lower interest rates creating significant pressure on earnings.
Net mark-up income fell to Rs26.30 billion, compared with Rs32.47 billion a year earlier. Mark-up earned also declined, although the lower cost of funds provided some relief.
Non-interest income was mixed. Fee and commission income dropped to Rs3.06 billion, while gains on securities turned into a Rs575 million loss. Foreign-exchange income, however, increased to Rs5.31 billion.
Cost Control Provides Some Support
Operating expenses declined 4% to Rs11.01 billion, showing that the bank has taken steps to control costs.
The bank also recorded a net release of Rs1.11 billion in credit-loss provisions, compared with a Rs587 million release a year earlier. However, these recoveries could not fully offset the decline in core revenue.
Advances And Deposits Continue To Grow
The bank’s balance sheet showed stronger lending activity during the period.
Net advances increased 15% from December to Rs245.5 billion, while deposits rose 3% to Rs671.3 billion.
A notable improvement came in the deposit mix, with current accounts accounting for 57% of total deposits, up from 48% in 2024. This shift provides the bank with a stronger low-cost funding base.
Investment Portfolio Shrinks
While lending increased, the bank significantly reduced its investment portfolio.
Investments declined to Rs292.1 billion from Rs478.4 billion, while lending to financial institutions jumped from Rs12.5 billion to Rs166.6 billion.
The changes suggest a substantial reshaping of the bank’s balance sheet rather than straightforward expansion.
Leadership Change At Standard Chartered Pakistan
The results also come during a leadership transition. Rehan Shaikh stepped down as CEO after six years, with Adil Salahuddin taking over following regulatory clearance.
The bank continues to maintain strong credit ratings, but its latest earnings show the challenge of sustaining profitability in a lower-interest-rate environment.
Dividend Maintained Despite Profit Decline
Standard Chartered Pakistan’s decision to maintain its Rs3 per-share interim dividend keeps shareholder returns relatively stable despite the 29% decline in half-year profit.
The results highlight a mixed picture: stronger advances and a healthier deposit mix provide positives, while lower interest income, weaker fee revenue and securities losses remain key pressures.